ACOM CO., LTD.

The Loan & Credit Card Business is a core business accounting for ¥181,889 million in revenue (53.9% of total operating revenue) in FY2026 (ending March 2026), and there is a risk that revenue could decline due to fluctuations in the number of customer accounts, outstanding balances and contracted interest rates, intensifying competition, changes in the legal framework, and a downturn in personal consumption. Since a decline in this business's revenue would have a significant impact on consolidated results, the Group works to increase new customer acquisition and improve product and service functionality, while regularly managing and analyzing the trend of operating loan interest income against plan and maintaining a system for reporting to risk management report meetings and the Risk Committee.

With respect to operating loans, installment receivables, and indemnity receivables, which account for the majority of total assets, if customers' creditworthiness declines and repayment delays increase due to changes in economic conditions, market environment, social structure, or legal and regulatory reforms, credit costs (the sum of provision for bad debts and provision for loss on guarantees) may increase, which could affect business results. In response, the Group conducts regular monitoring of customers' creditworthiness and strives to maintain the soundness of its receivables.

Some loan agreements entered into on or before June 17, 2007 exceeded the maximum interest rate under the Interest Rate Restriction Act, and the Company may be required to respond to customer claims for repayment of excess interest paid. Losses from interest repayments have declined each period since peaking in FY2011 (ended March 2011), and a sharp increase is considered unlikely; however, an unfavorable judicial ruling or changes in the external environment could result in additional provisions to the allowance for losses on interest repayments, which could affect business results. The Company re-evaluates the allowance by forecasting future trends at the end of each fiscal year and conducts monitoring on a quarterly basis.

If the funding environment deteriorates due to a sharp rise in market interest rates, a decline in business performance, a downgrade in credit rating, or other factors, the Company may find it difficult to secure necessary funds or be forced to raise funds at significantly higher interest rates, which could affect business results. The Company currently holds a long-term rating of AA- from both R&I and JCR, and works to mitigate liquidity and interest rate fluctuation risk through diversifying funding methods such as corporate bonds and commercial paper, establishing liquidity backup facilities such as commitment lines, maintaining a fixed-rate funding stance, and adjusting the ratio of long-term to short-term funding.

If systems stop functioning or malfunction due to delays in the planning or development of critical system projects, system failures, unauthorized access, computer virus infection, or external events, this could disrupt the provision of customer services and sales activities, damage trust, and affect business results. In response, the Company conducts monitoring from the perspectives of system planning, development, and operation, reallocates resources, and establishes and trains on systems and procedures to prepare for unforeseen events.

Against a backdrop of advances in digital technologies such as AI and heightened geopolitical risk, cyberattacks are becoming more sophisticated and elaborate; if customer information is leaked or system functions are disrupted, this could hinder the provision of customer services and sales activities, damage trust, and affect business results. The Company has established a response framework for cyberattacks in both normal and emergency situations, and promotes the development of procedures and manuals, the collection of vulnerability information and implementation of countermeasures, and regular training and drills.

If officers or employees engage in inappropriate conduct, conduct that deviates from social norms, or inappropriate business operations occur, this could lead to customer attrition, reduced business opportunities, administrative sanctions, and other consequences that affect business results and corporate value. The Company promotes measures including the establishment of the "ACOM Group Code of Ethics and Conduct" and related training to foster a compliance culture, the development and strengthening of internal control systems, consumer protection awareness activities, stricter credit management, and countermeasures against financial crime.

If the Company is unable to secure sufficient personnel due to a declining working population and increased labor mobility, this could affect the sustainable growth of the Group. In response, the Company implements measures such as raising base salaries and bonuses, introducing an IT skills certification system, enhancing personnel systems and employee benefits, strengthening new graduate and mid-career hiring, enriching training systems including selective education and digital talent development, and supporting the acquisition of AI-related qualifications.

The Overseas Financial Business (EASY BUY in Thailand, ACF in the Philippines, and ACM in Malaysia) accounted for ¥67,526 million in revenue (20.0% of total operating revenue) in FY2026 (ending March 2026), and business results could be affected by changes in the legal framework of the countries in which the Group operates, conflicts between nations or economic sanctions, intensifying competition, a downturn in personal consumption, and exchange rate fluctuations. Each company works to increase new customer acquisition and improve product and service functionality, while the Company regularly manages and analyzes the trend of operating revenue against plan at EASY BUY, its largest subsidiary, and maintains a system for reporting to risk management report meetings and the Risk Committee.

If a large-scale earthquake, volcanic eruption, storm or flood damage, or other natural disaster, the spread of infectious disease, conflict, terrorism, or similar events occur in regions where the Group's business base is concentrated, such as the greater Tokyo area, this could cause damage to facilities and equipment or human casualties, affecting business results and business continuity. The Company enhances effectiveness through the formulation of business continuity plans, the establishment of backup systems for call centers and core systems, the development of chain of command and role allocation for emergencies, the securing of disaster supplies, and regular education and training.